Have you ever wondered how much do tax-free (illegal) jobs earn?

Basically, illegal jobs or grey area jobs where they can hide their income. (prostitution, gambling dens, drugs or piracy), or other forms of
cash based business. Their income revenue are not recorded by the government and they can earn an absurd amount. For example, I know of a
guy who has paid $15k just for a night with an escort, and I've heard of people who has paid more. How about gangs who control illicit business?
We see the richest top 1000 people on forbes, but maybe they are not in their true relative position. There could be a hacker who has been siphoning millions and millions from banks or other methods and has yet to be caught, or maybe a drug lord who has earned billions, who knows?

Anyone has any inkling how much do these individuals make and their net worth?

a reply to: icyboy771z

Are you asking people on here to admit to being accessories to illegal activities?
No one who's engaged in such things is going to give that type of information.

Now I do know of what's been described as an "Underground Economy" of people that use their skills in gardening, handyman stuff, and general day laboring to make ends meet.

I don't have a problem with the latter doing beneficial, community orientated work under the table. However, the illegal crap only serves to enrich people who don't give two sh#'s about their community or the law.

And you expect them to open the books?? Hahahahha.. I wouldn't hold your breath..

a reply to: icyboy771z

as the PROCEEDS OF CRIME ACT , 2002 can be used to investigate // prosecute actions that occured upto 20 years ago - i doubt that you will get much of a response from UK members of ATS

a reply to: icyboy771z

The following has been around for a while but I find it (somewhat) relevant to where I think this conversation may be headed....

You have two families: “Joe Legal” and “Jose Illegal.”

Both families have two parents, two children, and live in California . . .

Joe Legal works in construction, has a Social Security Number and makes $25.00 per hour with taxes deducted. Jose Illegal also works in construction, has NO Social Security Number, and gets paid $15.00 cash “under the table”.

Ready? Now pay attention . . .

Joe Legal: $25.00 per hour x 40 hours = $1000 per week, or $52,000 per year.
Now take 30% away for state and federal tax; Joe Legal now has $31,231.
Jose Illegal: $15.00 per hour x 40 hours = $600 per week, or $31,200 per year. Jose Illegal pays no taxes. Jose Illegal now has $31,200.

Joe Legal pays medical and dental insurance with limited coverage for his family at $600 per month, or $7,200 per year. Joe Legal now has $24,031. Jose Illegal has full medical and dental coverage through the state and local clinics and emergency hospitals at a cost of $0 per year. Jose Illegal still has $31,200.

Joe Legal makes too much money and is not eligible for food stamps or welfare. Joe Legal pays $500 per month for food, or $6,000 per year. Joe Legal now has $18,031.
Jose Illegal has no documented income and is eligible for food stamps, WIC and welfare. Jose Illegal still has $31,200.

Joe Legal pays rent of $1,200 per month, or $14,400 per year. Joe Legal now has $9,631.

Jose Illegal receives a $500 per month Federal Rent Subsidy. Jose Illegal pays out that $500 per month, or $6,000 per year. Jose Illegal still has $31,200.

Joe Legal pays $200 per month, or $2,400 for car insurance. Some of that is uninsured motorist insurance. Joe Legal now has $7,231.
Jose Illegal says, “We don’t need no stinkin’ insurance!” and still has $31,200.

Joe Legal has to make his $7,231 stretch to pay utilities, gasoline, etc.
Jose Illegal has to make his $31,200 stretch to pay utilities, gasoline, and what he sends out of the country every month.

Joe Legal now works overtime on Saturdays or gets a part time job after work.
Jose Illegal has nights and weekends off to enjoy with his family.

Joe Legal’s and Jose Illegal’s children both attend the same elementary school. Joe Legal pays for his children’s lunches while Jose Illegal’s children get a government sponsored lunch.

Jose Illegal’s children have an after school ESL program. Joe Legal’s children go home.

Now, when they reach college age, Joe Legal’s kids may not get into a state school and may not qualify for scholarships, grants or other tuition help, even though Joe has been paying for state schools through his taxes, while Jose Illegal’s kids “go to the head of the class” because they are a minority. Joe Legal and Jose Illegal both enjoy the same police and fire services, but Joe paid for them and Jose did not pay.

You get the picture?

a reply to: eluryh22

Jose Illegal still has $31,200.

Joe Legal pays rent of $1,200 per month, or $14,400 per year. Joe Legal now has $9,631.

Jose Illegal receives a $500 per month Federal Rent Subsidy. Jose Illegal pays out that $500 per month, or $6,000 per year. Jose Illegal still has $31,200.

cropped it to expose the blindingly obvious

a reply to: eluryh22

You fail to take into consideration that Jose illegal is not allowed to work without an SSN (Social Security Number); even if that number is not actually his.

His employer is required to report ALL wages paid if those wages are to be deductible as business expenses for the employer's taxes. If Jose's employer does not report Jose's wages, Jose's employer cannot claim those wages as an expense and so must report more profit.

More profit means higher taxes.

Unless Jose's employer decides to commit tax fraud and under report his taxable income.

And that income is likely far, far greater than Jose's!

a reply to: Bhadhidar

You fail to take into consideration that Jose illegal is not allowed to.......

That's like saying someone fails to consider that an illegal alien is not allowed to be in the country.

Since when do law breakers follow the law?

Edit to Add: Law breakers meaning those working illegally and those hiring workers illegally.

I know in the construction trade I paid"daily laborers" cash daily,as they were used as needed,most job's,security etc,that is short term pay cash,but yes the illegal do it on an ongoing basis,dispensary workers as well

originally posted by: eluryh22
a reply to: Bhadhidar

You fail to take into consideration that Jose illegal is not allowed to.......

That's like saying someone fails to consider that an illegal alien is not allowed to be in the country.

Since when do law breakers follow the law?

Edit to Add: Law breakers meaning those working illegally and those hiring workers illegally.

And why would Jose Illegal NOT file a tax return, and thereby take responsibility for his taxable income?

It is unlikely that he's earned enough to actually owe any taxes, after deductions and exemptions; he can't claim any of the taxes withheld for a refund if he doesn't file, assuming he had withholding. And the last thing an undocumented alien wants is to risk having the government tracking him down for tax evasion, or for any other illegal activity; logically, the undocumented try to keep the lowest possible profile.

a reply to: Bhadhidar

I'm not sure I understand your last post.

And why would Jose Illegal NOT file a tax return, and thereby take responsibility for his taxable income?

Why would someone working off the books claim their income and pay taxes on it? I would assume that they would not.

It is unlikely that he's earned enough to actually owe any taxes, after deductions and exemptions; he can't claim any of the taxes withheld for a refund if he doesn't file, assuming he had withholding.

I don't think that is a fair assumption to make. There are a ton of factors there. Is he single with a single dependent? What type of work? Does he have a spouse that is also working off the books?

And the last thing an undocumented alien wants is to risk having the government tracking him down for tax evasion, or for any other illegal activity; logically, the undocumented try to keep the lowest possible profile.

I agree Jose Illegal wants to stay under the radar, which is why he wouldn't file taxes. Earlier you had mentioned using a fraudulent SS number. Why would they add another crime to pay taxes that nobody is looking for? A sudden flash of morality?

Again, I'm not sure if I interpreted your last post the way it was intended.

There are also many more common and less "risky" things. Try landscapers. Unlicensed electrical work. Construction/remodeling projects all around by unlicensed individuals. Tow truck drivers.

The amount of jobs with a front 'business' but actually take most of their payment under the table is endless.

All you need is a drivers license and steel toed boots and you can report downtown in my city for general labor work at 9 to 12$ an hour paid same day in cash. Everyday. Advertised on cL even.
Screw the government. There is no law for income tax. You could take it to the supreme court with enough money. It is just one of those things the people let them get away with.

As a teen, I used to shovel snow off of driveways for cash tax free. Gasp!

That being said, i paid taxes on all income last year. Thats what happens when it comes on a check or DD.

Want a good business to get into if you want to make under the table money and have your own house and yard?

Under the table BABYSITTING.

You're making more than a mid level prostitute. More than Jose Legal or Illegal. More than some low/mid level drug dealers.

Bessie Babysitter charges $35 per child, per day, 5 days a week. She doesn't do diapers, doesn't do babies, and feeds your child super low budget lunch and a snack. She watches 6 kids a day with the occasional straggler after school.

6x32 (Budgeting for lunch and snacks)=192
192x5= 960
960x52 (give or take vacation and sick days)= 49 920!

Factor in surplus income for after school kids, likely siblings of the full day kids. So, say, 2 hours of babysitting for an extra 5 bucks tacked on to the day. That would probably round out missed days, etc.

So, if you want an 8-5 job (you set your hours, really) Monday to Friday, tax-free (tell those parents you don't give receipts!), and you don't mind kids...here is your tax haven.

So ladies, (Daddy Daycare might have made money, but most people still don't fly with male babysitters), invest some money into a fenced backyard and kid proof your rec room. Here's your stay at home job. It will only drive you half crazy.

a reply to: icyboy771z

All the more reason to NOT make certain things illegal in the first place. Making something illegal like prostitution or drugs or gambling just creates a market for it underground where there are no regulations, taxes or protections. Making some things illegal just puts money in the hands of criminals and creates more organized crime.

You fail to take into consideration that Jose illegal is not allowed to work without an SSN (Social Security Number); even if that number is not actually his.

Pretty sure this applies to NONE of the folks picking the produce that ends up in your grocery store......